ye Question 36 of 505 Question 36 2 pointsSdvene Current ass

ye Question 36 of 505 Question 36 2 pointsSdvene Current assets on a classified balance sheet under US GAAP Should be lsted OA by liquidity 0 B. by importance o C by longevity. O D. alphabetically

Solution

Question 36.

Answer is A.

The listing will be 1. Current assets and 2. non current assets.

Under current assets cash is listed first (since it is the most liquid asset) followed by other assets in the order of decreasing liquidity.

Question 40

The answer is D.

The closing entry process consists of closing all the temporary accounts .The revenue and expenses anccounts are all temporary accounts as they are not carried to the next periods and the financial performance of an entity is to be recorded in the financial statements and is to be reflected in the financial positon(reflected by the balance shete) as at the closing date. Blance sheet accounts are permanent in nature as they reflect the financial position of an entity as at a particular date.